Land surface temperature (LST) is a crucial parameter that reflects land–atmosphere interaction and has thus attracted wide interest from geoscientists. Owing to the rapid development of Earth observation technologies, remotely sensed LST is playing an increasingly essential role in various fields. This review aims to summarize the progress in LST estimation algorithms and accelerate its further applications. Thus, we briefly review the most‐used thermal infrared (TIR) LST estimation algorithms. More importantly, this review provides a comprehensive collection of the widely used TIR‐based LST products and offers important insights into the uncertainties in these products with respect to different land cover conditions via a systematic intercomparison analysis of several representative products. In addition to the discussion on product accuracy, we address problems related to the spatial discontinuity, spatiotemporal incomparability, and short time span of current LST products by introducing the most effective methods. With the aim of overcoming these challenges in available LST products, much progress has been made in developing spatiotemporal seamless LST data, which significantly promotes the successful applications of these products in the field of surface evapotranspiration and soil moisture estimation, agriculture drought monitoring, thermal environment monitoring, thermal anomaly monitoring, and climate change. Overall, this review encompasses the most recent advances in TIR‐based LST and the state‐of‐the‐art of applications of LST products at various spatial and temporal scales, identifies critical further research needs and directions to advance and optimize retrieval methods, and promotes the application of LST to improve the understanding of surface thermal dynamics and exchanges. Plain Language Summary Land surface temperature (LST) is a crucial geophysical parameter related to surface energy and water balance of the land‐atmosphere system. Satellite remote sensing provides the best way to measure LST and generate various LST products at regional and global scales. In this review, to facilitate the application of LST products in different fields, we first present the physical meaning of satellite‐derived LST. Subsequently, we summarize recent advances in LST retrieval and validation methods, with a special focus on the state‐of‐the‐art product collections, product accuracies and intercomparisons, and main problems in current LST products as well as their possible solutions. Additionally, we also review the major applications of LST products in agricultural drought monitoring, thermal environment monitoring, thermal anomaly monitoring, and climate change. Finally, we offer recommendations or perspectives to promote LST retrieval methods and their applications. This review will aid the user in gaining a thorough comprehensive understanding of satellite‐derived LST products and promoting their appropriate applications. Key Points State‐of‐the‐art satellite‐derived land surface temperature (LST) product levels, sources, uncertainties, and differences are provided Typical applications of LST products in various fields are summarized Future directions for the generation and applications of LST products are recommended